leading decliner >> i don't think larry is tough on trade then retaliation against companies like boeing goes out the window but cat hadn't recovered today with that news >> thanks for being here that does it for us. have a great rest of the day power lunch starts now here's what's on the power lunch menu, the race to replace gary cohen cnbc's larry cudlow the leading contender to become president trump's leading top economic advisor. the bombshell about to drop any moment that could add to those fears. plus the streets still bullish on apple do you still have time to get in on the latest run?

"power lunch" starts right now and welcome to power luncheon a monday i'm melissa lee. the dow is struggling right here we're down to triple digits, 134 to be exact. apple the biggest gainer in the dow. michelle had mentioned that. right now, though, boeing is is the biggest loser. and that's accounting for 70 points of the dow's losses right now. about 2.7% and check out the dow market slipping, results of a big ten-year auction just away and average demand for notes falling to the lowest in ten years. >> we begin this hour as we have on so many afternoons lately in washington today president trump reportedly narrowing down the list to replace gary cohn as his top economic advisor jim kramer says cnbc contributor

larry cudlow is a, maybe the leader for the job eamon? >> reporter: the president has talked about the idea of bringing in somebody from the outside for a while now for economic counsel director. just last week he touted a lot of people outside the white house and administration would be candidates for this job here's what he said. >> i have a choice of anybody. i could take any position in the white house and i'll have a choice of the ten top people having to do with that position. everybody's wants to pea there, and they love this white house because we have energy like rarely before. >> reporter: so the challenge for a larry cudlow type is he has opposed the president's moves on tariffs and as recently on cnbc was giving the type of

advice he would give to it president not what the president has been saying in line recently on tariffs here's what he said. >> you know what's less harmful on tariffs if the steel industry has problems, then keep them alive with subsidies subsidies are less economically harmful than tariffs. >> reporter: other candidates we're told include peter navarro,tia kyra knight has been mentioned as well. as a couple of other candidates here there have been some balloons over the past couple of weeks or so we'll see where this one goes today. we'll get some information whether they intend to make this decision sooner or later later in the morning we got some guidance the decision has been made we won't hold it up just for the sake of holding it up. we'll move forward

>> you mentioned a copal uple o possible names being floated and i wouldn't even consider larry an outsider because he was one of the chief economic advisers to the campaign so it was within the orbit he may go some completely different direction and bring in a testified bona fide outsider >> someone told me this this morning, if it's picking a defense secretary, president trump doesn't have a huge rolodex in that world, but in the financial world he does. so this president knows a lot of people it's possibly he could reach entirely outside his orbit and tap somebody we don't have on our short list at this point, but i think that's unlikely. the question is whether he wants to bring in somebody who disagrees with him on tariffs,

especially on what we saw on steel and aluminum last week >> and that's a key question one the market is very focused on, eamon. in fact, let's get to bob at stock trading this hour. "the wall street journal" editorial page went as far as to say if peter navarro replaced gary cohn sell your stocks >> i think that was part of the reaction we saw. jim saying a couple of hours ago larry might be the one to replace mr. cohn and that was part of the relief about mr. navarro not advancing at least but we are seeing a bit of overhang on the tariff issue today. we were just drifting straight down let me show you the stocks that benefitted the most from the tariff is not a big issue story in the middle of last week here. boeing was down more than $1.10.

other big industry names like caterpillar were also weak i call this a bit of hangover from the tariff story because these stocks are moving. the other big problem we had today are banks. the ten-year yield has stopped moving up. we were also waiting on news potentially for regulations on some of these banks, on some of the regional banks and they've been weaker today. finally i want to note a cup of other things the kbe, the highest since 2000. so a lot of expectations for regional banks here. the big issue right now is we don't have a lot of news going on until the fed meeting we've got the job report earnings out of the way here so the bad news i think we're still very susceptible to these inflation news and tariff news

the good news is we're just slowly drifting towards record highs. the dow and the nasdaq more than 2% ten year notes up for action what can you tell us, rick >> reporter: well, you know, demand it straight up. one eastern for this ten-year auction i grade it a c plus. let's go through it, chal we it's really nine year, 11 month. 2.889% and it was right around there, although the one issue market was being a bit choppy right at the end 2.5 times subscribed to over a bit above the average. 66.2 on indirect was a little bit better than the ten direct as was the 4.5% for the direct

so c plus, and do keep in mind it looks like the 289 as we're trading nine we could have a 12th in the row for closings >> rick, lots of uncertainty in the market these days from the impact of tariffs to who will be the president's next economic advisers so what should investors do with their money right now? joining us is the director of the efig midcap fund and his title is a little easier, senior investment strategist welcome to both of you joe, let's talk about economic fundamentals job reports were good, incomes

certainly mere muted is it green light for invelsest? >> i think it reassures investors. >> joe first and then john we'll get right back to you. >> i think it reassures investors the fundamentals of the economy are quite sound. going back to the jobs report last friday it certainly was a strong report, and the wage growth data, inflation that appears to be tame or at bay at least for the time being you couple that with the strong earnings data we had with the expectations of additional fiscal stimulus over the course of this year as a result of these lower tax rates and i think that in itself is what's helping markets grind a little bit higher >> yjohn, how important is it fo who replaces gary cohn, and whether or not this battle over trade is going to play out to

the degree we think the stock market is afraid of protectionism? how much does the market care about that voice in the west wing in. >> so the market does care if you look at the market reaction, you know, woo do not like exogynist events. when i look at the rhetoric around tariffs that's an aggressive tax on the consumer i think the two bigger risks is that vestors sit on the side lines and try to delineate between these and miss out on being invested you saw what happened last week. if you're sitting on the side lines you're not going to be able to benefit from that rally. and secondly i would argue there's a risk of overpaying and there are some real opportunities it with regard to evaluation today so those two opportunities seem to outweigh if you think about where the markets could be six

months to a year >> you thought about the level which you should be careful of soft-term evaluations. i feel like this market is telling us something in today's sessions we're sort of dancing along the flat line here we've got volatility up 10 per, and cat and boeing and lockheed martin because they're not exactly tradeoffs or exemptions. >> we're in a bit of tug-of-war between solid economic data and in certain pockets of the world abroad, and against that on the other hand you've got a lot of uncertainty. whether it be political earn certainty, whether the aftermath or what exactly is going to come as a result of these tariffs and let's not forget this is all happening at a time where monetary policy is beginning to

tighten here i think the end result of all of this is that markets grind a little bit higher on the underlying fundamentals. but at the same time volatility starts to pick back up i think the volatility we didn't see last year was a bit of exception to the norm. and over the course of this year considering all these things you just mentioned i suspect we're looking at choppier markets. >> so, john, your pick among several is midcap bangz. why? >> yeah, so we think the midcap banks are positioned well. i hesitated to say i like midcap banks before i came on today, but the reality is even the they seem boring the returns have not been so far this year. that's driven by the fact you have higher net interest margins and you're seeing a higher corporate tax rate and the impacts on those and in addition to that we heard a moment ago there's going to be regulation that could be passed that disproportionately benefits

the midcap banks relative to the large cap banks. and if you think what's going to happen to sifi moving that threshold. those benefits can flow through to the shareholder and even a stockholder like bb &t said they were going to come out. so this looks interesting. >> boeing accounting for nearly all of dow's losses today so what's fueling that fear and a big interview coming up on power lunch. justen trudeau joining us in the 2:00 p.m. hour china got its exemption. what about other countries we're talking stocks and trade next on "power lunch." the new new york is ready for take-off. we're invested in creating the world's first

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will join us on "power lunch" next here in the next hour meantime steel and aluminum tariffs go into effect in just another week >> the clock is ticking for countries to reach those deals on national security grounds that would exempt them australia is one exempt, and canada is mexico are looking to make their exemptions permanent. wilbur ross will be negotiating in europe to try to lower trade barriers there sources say there are no further meetings planned and they are waiting for next steps from the administration the commerce department did not return calls seeking comment meanwhile the eu says it's ready to retal i waniate around the world reaction has

been fierce. south korea said it would deploy all possible means to fight those tariffs including leveraging the wto china's steel and metal associations demanded to as well president trump said the u.s. would not be taken advantage of anymore. >> she's the professor at george washington university's affairs. we have the prime minister coming up in the second hour of "power lunch." if you were advising him what would you tell him to say inon the one hand canada was exempt and on the other hand saying they should play better ball on nafta? >> he should say we have to many extents a unified economy with canada, mexico and the united states and it's important we cooperate.

as an example that unified economy is automobiles and this could have a huge impact on the auto industry, which like the steel industry is suffering from problems of over capacity and so let's say these tariffs go on, and canada which is the largest source of steel for the united states, canadian steel becomes much more expensive. that will have impact on cars produced in north america. and if they become more expensive, a couple of things could happen consumers could choos less expensive cars from other countries or use services such as uber and lyft and not use cars so i don't think the trump administration has weighed the direct and indirect implications of this for the u.s. economy for the long-term, and that is deeply disturbing. so i would tell minister trudeau, who by the way is called the trump whisperer

because he's been so adept at handling trump and i'd tell him to push back but also delay the negotiations and have united fronts with mexico on these topics >> professor where obviously canada and mexico have the exemptions what about other countries who don't have it? how should they approach it especially when president trump is bringing in other tangential issues such as military spending >> first of all, steel's problem is not a national security proble problem. as secretary defense james mattis has pointed the u.s. uses 50% of all steel used inunited states for there are other sectors that are

much more important. the problem of steel is one of over capacity and under demand more and more sectors instead of using steel are using hay tech plastics and other substitutes so we need to address the problem of overcapacity and under demand but we've been using protectionism for many years and in my view the reason we do so is because it is off budget what would help so much more would be a global agreement on steel capacity, phasing it out gradually, and to help the workers. which requires lots of spending to help them transition to other jobs the reason i -- >> okay, i'm sorry, we want to make sure we have enough time to get to the prime minister who we're watching live on the other side of the screen there so thank you so much for weighing in. we appreciate your thoughts. >> thank you >> and yet another reminder canadian prime minister justin

trudeau going to join us in the next hour here on "power lunch." while some recent i pos have struggled stitch fix is up more than 50% since its debut i have a guest here today, and sophy described what it was. why sending people clothes is better than sending them food. plus tiger woods coming up short in his bid to win the pga tournament, but the golf world doesn't seem to care here was a putt he missed on the 18th hole. t me a birdie to get within one

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there's no point in looking elsewhere really. we're the tenneys and we're usaa members for life. usaa. get your insurance quote today. well, the baugolf world buzg over the return of tiger woods after a year of dealing with injuries and personal issues can he revive the golf business? early indications say yes. some numbers on the impact of tiger's return i can't tell you the number of people who said i watched both weekend rounds >> i watched both weekend rounds and i will admit i enjoy watching golf and tiger woods play, and many americans do. we are just getting the numbers from nielsen and golf channel and nbc sports are putting them outright now for those tv ratings people out there who know what we're talking about, a 5.11 rating

that's a good number for golf on a weekend. it also triple the viewership it was for this same last year. for a little bit more added context about what those numbers mean for tiger woods and the game of golf, this was the best rated golf on television outside the masters since the 2015 pga championship final round it is also the best regular season pga tour event by viewership since the 2013 players championship, and one guess, guys, who won that 2013 championship >> the guy we're looking at. >> right and when you talk about golf and the world around it this is huge boost. >> even if you're another player who's jealous of tiger woods, you want him in the game because more people watch you and see you. >> one up-and-coming golfer is reed he was a contender in this

championship i also remember on this show remember just two months ago we were speaking with chip brewer on "power lunch. he's a competter in terms of equipment and he even said it's a great effect three big dow components in the news today apple hit an all-time high, and all that and much more coming up on power lunch with objectives like building capital for the future, managing portfolio risk and liquidity and generating income. that's real etf innovation. flexshares. built by investors, for investors. before investing consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing

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hello, everyone. i'm sue herrera. here's your cnbc news update for this hour. the president of chad welcoming secretary of state rex tillerson to the presidential palace tillerson cutting short his trip to africa to return to washington one day ahead of schedule to deal with other urgent matters including the announcement that president trump will meet with north korean leader kim jong-un. syrian television broadcasting footage showing the

ongoing fighting in eastern ghouta police in london say two people have been taking to the hospital as a precaution after a suspicious package was found at a parliament complex and here at home buffet employees eagerly filling out their college basketball brackets mr. buffet says he will reward $1 million a year for life to the employee who guesses the sweet 16 he'll double the prize of either nebraska or creighton win it all and offer $100,000 for the bracket that stays perfect the long-es longest. got all that fill out your brackets >> a lot of money to be made >> yep, a lot. the dow losing 113 point

gain turning negative midday, decline of a half percent. the s&p 500 is lower as well, but only by a half a point what's leaving the s&p, your industrial health care and materials. and what's losing here are your leaders, technology, real estate and also consumer discretionary. dragging on the dow is boeing, caterpillar and boeing technologies apple is hitting an all-time high here to discuss, stan great to have you with us i want to kick it off saying something reportedly to effect of apple is not required to buy at this point. and yet you say apple is and should be under pressure to bolster its content. what should it do? >> obviously netflix and amazon are leading that

enour opinion apple, this is really the window of opportunity they need to double down on content, spending less than a billion dollars this year. it comes down they're going to have to significantly acquire content. otherwise that's really the next piece of this growth area we see for apple. i think they have an uphill battle to the content side >> acquiring content to the agree netflix has acquired content? >> yeah, i would agree acquiring to 2, $3 billion a year. they're going to have to narrow that gap >> why should they become netflix-like why does that help their eke system why is it good enough to have incredible soft to make the phone better or new products that run the concept >> software being the bread and butter, that's enough to continue to see the type of

growth they're having. it's about do they want to add the next grill to the stool on it do you put content into that fry wheel? this is huge window of opportunity. if they decide to go, they're going to do it now if they're not, it's going to be a software services and iphone story. we continue to think that's the fuel in the engine that leads to the next year. >> why is it sufficient for them to be the gateway to other people's concept if i'm on my apple tv or smart tv, i have nigh netflix account there and i click on it. i have my amazon clicker there i can go get it anyway i want. what would their unique benefit be or advantage be if they did that >> that's a great question their unique benefit is they can further monetize and the big question for apple is can they monetize that

billion plus user base the question now is can they put that content -- do they aggressively go after-content and put it into that ecosystem >> are we paying for that content? >> a lot of that would be the software services, very similar to what they do with apple streaming music. there's been a lot of starts and sort of stops here, but that's why right now if you look at a lot of their famed brethren it's really a content war so if they really do go after it, this is the time >> it's great to be in hollywood right now, but you think these good times are really going to last that long private equity is funding these guys i don't know how long they're going to do it for making content is really hard.

we know because we work at a tv network. it could go badly. why not wait until these people slash each other to death? >> you have netflix spending $8 billion and facebook now going to sport content when you look at what fox did with acquisition and comcast putting this bid in for sky, this war is going to continue to escalate and right now companies strategically weather it's apple, google, whether facebook, you look at what netflix husband done, it's a content war and it's really a streaming world. and that's why you look at netflix going from 60 million international to potentially 90 million over the next three years. switching gears stitch fix

has a price starter. >> 28, what katrina has done there with 20, 30% growth. going to 3 billion users for the stitch fix model as they go into managed plus sizes they really have developed with the ai, with the data a unique business model where it's just hard to get into that iron fortr fortress >> dan, good to see you. thank you. we've got a news alert for you let's head to sue gurara >> this pertains to the russian spy and his daughter who were poisoned prime minister has been under prelser to address this issue.

she has just done that under parl lt. and she says it is highly likely russia is responsible for the attack on he and his daughter back on march 4th. she says the chemical used in the attack is being identified as part of a small group of nerve agents known as novachock, very rare apparently and she said should there be no credible response from russia to these allegations she will conclude this amounts to an unlawful use of force from the russian state against the united kingdom. she's been under pressure to take actions or propose sanctions. the question is what sanctions can she put in place the russian ministry has responded by saying it's basically nonsense but nonetheless the prime minister is responding the two do remain still hospitalized he and his daughter. and the sergeant nick bailee who

fell ill while attending them is also in very serious condition melissa, back to you >> thank you very much for that update, sue hull rara. wilford frost is joining us. >> david solomon has been picked as an heir to become the next ceo of goldman sachs this was decided at a board meeting at the 21st of february following a recommendation solomon and schwartz were told soon after gary cohn was never considered the rest were told at 8:50 this morning whether there was a significant level of surprise things were moving so surprise having joined goldman back in 1999 solomon's background in investment bank and then broadening to run all the

investment bank in 2006 and he became co-coo in 2016. outside of work he likes to dj and has a taste for fine wine. solomon's power internally has jumped already he will effectively take control of the organization. when the full announcement does come it will likely involve some promotions to support him. front runners include the cohead of securities and cfo marty shafez who was chief technology officer and fired by blankfire guys the ten-year note sitting just below 2.9% right now. could 3% be coming soon? and the prime minister of canada, justin trudeau, about to

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let's give you a quick market flash shares of micron soaring right now, up more than 11%. insta net raising its price target to 55 from dividend initiation and share buy back in may. micron is up 47% this year there are growing concerns at whether countries like china will keep buying our debt. where are rates going from here and what do bond investors do? let's hear from the fixed income manager at tia investments who ranked fourth in best bond families >> thank you for having me we do think tenure is likely to

touch 3% we have a declining dollar that makes it likely to attract global funds to buy u.s. treasuries and really it's in our view a demand and supply situation. we have a supply that will be roughly double this year and you're going to have a lot of buyers come in to purchase the treasuries >> treasuries don't look good and corporate rates don't look good either. they've been actually the worse asset class. so where do you go in your fund in. >> we think it's not a bad time to hold at this time now we think they probably have priced in some of this rate puff, and historically yield investors would come in and buy ig securities, high quality

securities after rates rise. we think there is room in performance there. what we're experiencing is obviously an interest rate situation than a quality situation. yieldier securities in the single b, high yield bond space, single b, and local currency preferred are reasonable places -- >> so right now the ten years get me 2.89% it's looked way better than in years, but how much yield can i get versus the risk? >> well, in 30-year high quality investment grade you can probably get high investment rates. that's not bad the reshtreasury needs to be pl tactically you could then add more leg in that matter. but as long as we're not risking

recession, spread and spready products so to speak should offer somewhat of an offset to holding pure treasuries or indeed mortgages certainly, which are probably our least favorite instrument right now with higher rates to come. >> i want to drill down on the use of em debt in your portfolio. if i were to believe consensus view, i would be scared at this point. em debt typically does not perform well in a recent years environment. and there's been a massive influx, and i'd be afraid of that massive exodus once the time comes, that there's going to be a rush for the exits here. >> and that concern is certainly fair one of the reasons we like local over hard currency em, we think that's where the value is

currently at this time we think it's important to stay diversified across em which have diverse bonds associated with them we think there's value to run in the more esoteric type frontier markets, sub-saharan africa and the like >> but i want to sleep at night, joe. can i sleep at night if i do that >> well, you need a diversified portfolio for sure so em, and they have to be focus on credit stories. you need a heavy emphasis on fundamental security selection that's going to offset some v volatility >> i'll going to hire a portfolio manager so i can sleep. you may not. that's what i do in those circumstances. 31 years ago today two companies joined the dow one made airplanes see if you you can guess

and the other sold soda. >> that's hard >> that's a brain teaser they both made a lot of investors a lot of money whh e t btebeiconisheetr t now? the case for coke versus boeing on "power lunch. alerts -- wouldn't you like one from the market when it might be time to buy or sell?

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on this day 31 years ago, boeing and coca-cola both joined the dow jones industrial average which at the time included names like bethlehem steel, goodyear, and the international paper company. both stocks have withstood the test of time with boeing soaring nearly 3,000% in that time period so what is ahead for those two stocks here to tell us are carter copeland, making the case for boeing and nick emotte from rbc capital markets for coca-cola. carter, let's start with you we talk about boeing so much, especially because kevin o'leary has pushed it so hard and done phenomenally well because the stock has done phenomenally well can it go higher from here >> absolutely. if you talk about the last 31 years and the 3,000 percent you referenced, that's about making more airplanes the next ten years, if not longer for boeing, will be about making more money on those airplanes. i think you're just at the front

end of seeing that this is something we have talked about on this program before the airplane business hasn't been one that's been particularly profitable over the last half century. about a 7% margin business boeing has gotten a lot smarter and better on how to make airplanes and deliver them to customers at a much higher profit we think the profit margin can double if not more over the course of the next decade, and really, when you have stock stories like that where businesses fundamentally change in what is actually a growth market, we think there's still a lot of upside associated with that >> we have heard so much about boeing's margin improvements due to their industrial global supply chain, their ability, like you said, to make airplanes in a smarter, more praufofitable way. are you worried about what we have seen about tariffs on steel and aluminum and a fight against the very notion of a global supply chain >> absolutely. you have to be

when you look at what's holding boeing back right now, i think clearly the overhang associated with trade is a big one. i think you look at the chinese market, clearly, this is inbiggest market in the world for airplanes. boeing and airbus are sold out for seven, eight years depending on the model you want to look at the chinese don't really have somewhere to go to get the planes they need to serve that demand however, could you see retaliatory impacts in that trade realm that cause the stock to sell off and the multiple to compress absolutely i think you could. and i think that's something that people worry about. and it's something we'll have to deal with, but in terms of the impact on the numbers and what we expect that will do to boeing's profitability over the course of the next several years, it's not that impactful in my view >> all right, carter, thank you very much. let's move on to the case for coke how about a case of coke nick motte, rbc capital markets,

has a bye rating and a $54 price target welcome. can coke be a growth stock ever again? >> well, it all depends on how you characterize growth. certainly within consumer staples if coke does hit its midterm targets, that would be pretty much growth in the consumer staple segment. right now, the sector is growing probably in the 1% to 2% range we're pretty optimistic that coke can at least hit the bottom end of the range around 4% given a combination of share gains, category growth, and they have a much more aggressive portfolio strategy under new ceo james quincy than they had prior >> why are we paying the multiple for coke, considering that growth is 4%, 5%? you're saying, you know, 25 times 2019 eps, and for what growth is this much more expensive than other staples? i feel like there are better places in the market in terms of paying 25 times 2019 and getting

more than 4%, 5%, 6% growth. >> it's unpack that. you have over 3% dividend yield. that's a good thing for those looking for income the second thing is, remember, coke is refranchising. their returns on invested capital are going to cross 30% that's a pretty high number. the highest roic number across the entire consumer staples sector, and across the entire market we think when you pump 4% to 6% top line through a 30% roic with a very good dividend, that to us is worth in the mid to high 20s in terms of pe >> how much is a lower tax rate going to help their eps? >> not by too much coke does a lot of hedging, and they had a very good tax planning program prior to the reform taking place. so really, a lot of the incremental growth that we think coke is going to get over the next several years will be from better volume, better pricing, and of course, better cost cutting. >> do they need to do something transformational or big in order to jump start this thing

to melissa's point, where growth is meh >> they already are doing something transformational what we have seen over the last couple years is coke has now started to refranchise its bottling system. so they own their own distribution now they're going to independent bottlers and providing them with distribution opportunities coke has gotten back to marketing. this company is cutting costs as a very aggressive pace, which iserary new and different relative to what we have seen from them historically culturally, this company is very different. they're doing a lot of things they needed to do. in terms of big m&a, i don't think they need to go there because their category is growing nicely, they just need to start participating in the overall category growth. >> i don't know if you follow pepsi, but if you had to pick between the two, which would you pick >> we do follow pepsi, and we would pick coke. >> nick, thank you rbc capital markets. got a huge interview coming up on "power lunch."

canadian prime minister justin trudeau joining us in a few moments. we're all over the markets dow down just about 100 points boeing responsible for nearly all of tseho declines. you won't want to miss the second hour of "power lunch. hey, need fast heartburn relief? try cool mint zantac. it releases a cooling sensation in your mouth and throat. zantac works in as little as 30 minutes. nexium can take 24 hours. try cool mint zantac. no pill relieves heartburn faster.

here's what on the menu. oh, canada the country dodging a tariff bullet president trump says they will be exempt. what happens if canada doesn't play ball on nafta negotiations? we'll speak with justin trudeau. stocks will keep on cooking. that's what ed says. why? and is he right? >> and ashton kutcher has been investing big on start-ups and made pretty good calls including airbnb and uber. what is he betting on now? he'll tell us. "power lunch" starts right now >> welcome to "power lunch." i'm michelle caruso-cabrera. let's take a look at the markets. the dow starting the day squarely in the green. before losing ground midday. you can see the dow is lower by 114 points had been down as much as 160 points s&p, call it flat. nasdaq is higher by 32 points. at a new intra day high earlier today. weighing on the dow right now, boeing, caterpillar, and intel

all off between 1.5% and 2.5%. tech, however, still the big leader with the nasdaq hitting the all-time high, as i mentioned. apple, amazon, nvidia, and microsoft also hitting all-time highs. nasdaq now up for seven straight days also a good day for financials goldman sachs, morgan stanley, and bank of america, they're all moving higher. and goldman sachs hitting new all-time highs as we learn more about what's going to happen when lloyd blankfein eventually leaves tyler. >> thank you very much for more on what's moving the markets today, let's bring in bob pisani and mike santoli from the floor of the new york stock exchange bob, you first any buzz from traders on our friend larry kudlow being a potential leading contender for gary cohn's job in the white house? >> well, you saw the market very much cared about that. we came out with that, jim came out with that about 11:30, and the market immediately came off the slows. we were down 160 points on the dow. we almost cut that in half, but we're drifting lower again i think the real problem right

now is other than what jim was talking about, we're sort of in an air pocket for news right now. we have the earnings reports out, the jobs report out the next big event is the fed, march 31st we have cpi and ppi coming up, but other than that, the market is kind of drifting around trying to figure out what it needs to focus on for the next week and a half. >> exactly, for the moment, it's kind of focusing on its own internal dynamics. we have gotten back all but about 3% of the s&p 500's loss the question is, it's behaver well you had semi-conductors leading, the banks leading. a lot of the tests are being passed, but the question is has it gathered up much momentum it's not clear right now that it has the horses for the moments to do that >> you can see the industrials giving back a lot of the gains the aerospace stocks, they're down today boeing has been a big drag on the dow. and other big industrials like caterpillar, they're also getting back some of their gains

today. >> thank you very much as we're kind of close to the lows of the session. not quite. we're nine years into this bull market can the markets continue to move higher let's bring in doug butler, director of research at rockland trust, and chief investment strategist, ed yardeni is here ed is out with a new book, predicting the markets a professional autobiography thank you. have the book on the set looks like nice light time reading. >> i hope it doesn't put you to sleep. >> nice piece in barron's over the weekend. you think the market can go higher >> i do. you know, the reality is, i have been doing this for about 40 years now. and when i started, the dow was 1,000. now it's 25,000. so the trend has definitely been your friend. that's mostly because earnings keep growing in a growing economy. so yeah, i think the market can continue to go higher along with earnings >> you're not wringing your hands over trade like so many other people are >> not really. this may be wishful thinking, but i think the president is

very much into the art of the deal he likes to negotiate. likes to take extreme positions then he likes to see how the other side, you know, meets him halfway, if they meet him halfway. if they don't, he blusters again. but i think he's really shooting not to eliminate free trade but to really make it fairer i think it would be -- it would be a misperception to say trade is completely fair i mean, we are taken advantage of in a lot of areas blowing the whistle and saying, you know, we need to do this on a more bilateral basis so we can renegotiate these things as needs occur, that's not a bad thing. >> doug, how do you weigh the risks at this point? we're in a rising interest rate economy. there could be a fourth interest rate hike later on this year or early into 2019. we have the potential risk of a trade war. valuations are kind of full right now. so where do you stand on weighing that all out? >> i think you do weigh it all out, and at rockland trust, we

really focus on what the needs and goals and objectives of our clients are and not sort of what we think is going to happen in the next 6 to 12 months. really, one of the things we're focused on is thinking about what could go wrong. and you know, dr. yardeni said i'm comfortable with the trade talks. but really concerned that he takes it a step too far and we get a full-scale trade war and that, you know, those are the risks on the horizon the risks on the horizon of the additional rate cuts, the fed's continued fears around setting an inflation target and maybe overtightening to avoid it but those are areas where if we look 12 months out and we're down in a bear market, those are the things that could go wrong >> that's what i was going to ask ed, doug, is if trade in your view isn't going to trip this market, what could? and how soon >> again, having been in this business for 40 years, i have

come to the very obvious conclusion that bear markets are caused by recessions we had one bear market in this 40 years that was not caused by recession. that was in 1987 that was basically a portfolio insurance flash crash. we have had a couple of these little flash crashes the last one occurred in early february, and it was all of 10%, it was a correction. it wasn't a bear market. it would have to be an event, in my mind, that causes a recession. protectionism can do that if it goes wild, but ronald reagan was a protectionist, and it didn't get to the point of causing a recession. >> and we don't have a ton of history recently because the trend has been toward free trade as opposed to protectionism. >> i think there's so much money that's being involved in globalization. and i recognize that globalization has created some income inequality, but on balance, it's created a lot of equality on a global basis i was just in southeast asia on a family vacation at the end of

last year. and the amount of -- you can basically see the prosperity that's evolving in a lot of these places globalization has been net-net a big positive for the global economy and certainly for the stock market take that away, we have a problem. >> so doug, you did sound concerned about some of these issues i understand managing for the individual client, but are you worried about the market are you encouraging people to get cash on the table here in case of a selloff? >> we have probably encouraged people over the past year to take some of their winnings off the table. but really, i think the doctor talked about it right in terms of globalization in general has been a good thing. i think the question is, in terms of trade policy, is trump reagan or is he herbert hoover we're hoping he's more reaganest. but really thinking about what could go wrong and so those are the areas geopolitically as well you have issues in korea

you know, president xi becoming president for life may be something that is a known unknown in terms of problems that we'll face in the next sdaesh. >> secretary mnuchin assured me president trump is no herbert hoover last week i'm sure that eases your concerns >> what a relief >> and so we talk a lot about valuations >> right >> melissa talked about how full the valuations are you're comfortable with that how much more are you willing to pay. >> given the risks on the horrison you talked about the risks individually, but collectively, they can go a little wrong and add up to something big. >> absolutely. it could always kind of become a runaway freight train, but that's the nature of investing there's always something to worry about. sometimes a lot of things to worry about and they can add up. i tried to keep things simple over the years, and it's really the market, just pe times e, the market multiple times earning. the earnings story is phenomenal

analysts have raised their earnings estimates for this year by $12 a share because of the tax cut. valuation is not cheap i'm not going to tell you that they're giving stocks away here, but the reality is, with the kind of earnings picture we have and the fundamental of our economy and the global economy doing well, i mean a lot of this bull market we had since donald trump has been president has had more to do with the global economy coincidentally doing extremely well, and it's still doing extremely well >> good luck with the book predicting the markets doug, you ever have a book come out, i'll wish you luck on that. >> here's what's coming up canada's prime minister justin trudeau joins us he'll talk tariffs, trade, and row negotiating nafta. and trump the manager, the style he used on the 28th floor of the trump tower may not transfer to the first floor of the white house, or maybe it does. what lessons can we learn from the past few weeks >> plus, a western state betting

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as the trump administration is lobbied by countries who want to avoid american tariffs on their steel and aluminum exports justin trudeau will sit down with cnbc to talk about canada's exemption, but let's bring in aronja c ara gonzalez what should justin trudeau's play book be now that they're excerpted but there's nafta negotiations to wade through >> i think it's unclear who is except and who is not. there's an avenue for canada and mexico to be let off the hook depending on the results of the nafta negotiations it's moving from a ruled-based to a deals-based system as far as i can see >> let's bring in dan. good to have you here, dan >> thanks for having me. >> what do you make of what's happening with trade and in particular with president trump at the same time exempting

canada and mexico while imposing the tariffs. >> i think tariffs are a bad idea to begin with especially pernicious when levied against things like steel and aluminum, because lots of u.s. companies depend on that. those materials. and the costs get amplified down through the supply chain it's a very bad idea you know, but i think there's a certain method to this madness, and the administration using this particular law, section 232, to invoke national security as a rationale for imposing these trade barriers >> why >> because the president seems to think that trade is a zero sum game, an us versus them proposition. here, he has a law that leaves him unconstrained. he's allowed to define a national security threat he's allowed to define what the remedy should be and who to target with it he's able to use it to leverage u.s. market share over other

countries. it's dangerous >> so the exemptions for canada and mexico, that's a good thing, but everybody is much more focused on china used to work at the wto, right a lot of people believe china has taken control of the process of the wto, used it to their advantage, to be allowed to continue to do what for the rest of the world are small transgressions but overtime they add up and are quite beneficial to them. >> i think it's a bit of an exaggeration, but if this were to be the case, frankly, it's not going to help this rein in china because it affects everybody but china. at the moment, china is already excluded from the american market as a result of anti-dumping measures the u.s. government has taken this, so to speak, national security measures are affecting everybody but china. second, these tariffs are not going to address what is the fundamental problem in this conversation, which is overcapacity in the steel and

aluminum markets for that, you need a different type of conversation you need people to sit around the table. it's something that was tested some months ago. didn't go very far, frankly -- >> we have to interrupt you. i'm so sorry hold on, because we want to get to cnbc's deirdre bozza who is with justin trudeau. take it away >> hey, thank you very much. we're here with prime minister trudeau. thank you for being with us today. >> a pleasure to be here >> i know the government industry really lobbied to get the exemptions on the steel and aluminum tariffs, but how do you make sure they're permanent? >> the exemptions aren't a magical favor that was being done we made the point and the true point that the integration of our steel and aluminum market is so intense across the canada/u.s. border that millions of jobs on both sides of the border depend on continued smooth flow of trade >> how do you make sure they stay permanent this is very conditional, as the

president has said >> we'll keep talking about nafta. we don't link together the taffe tariffs and the negotiations on nafta. really just highlighted the imposition of tariffs on canada would hurt the u.s. almost as much as it would hurt canada >> i have been talking to a few people in industry, a coo of a steel company in hamilton, and also the president of the steel association here they say the uncertainty, not knowing if the tariffs are permanent or not, are already causing uncertainty in their industries and preventing some investment how long do you let it go on for? >> that's one of the reasons i'm here, to reassure the workers we have their back. we know how hard and how great they're working on it, and there's all kinds of concerns in the u.s. about overcapacity from china. we have those capacities over the past two years we have strengthened our border controls on imports of steel from china we have brought in new measures, and we're happy todo more on that the point we're making

throughout is whether it's on the steel and aluminum industry or whether it's the national security side, where we have an air force base just a few kilometers from here that was brought in to protect these for the war effort in world war ii there's a level of integration and connection which means we'll keep having each other's back. >> i think that's undeniable, except i think canada has a lot more at stake being a smaller economy. i know you and minister freeland said you wouldn't be shy to take retaliatory measures >> i'm going to stand up for canadian interests, but right now, we're able to move forward, and the president saying he's not going to move forward with tariff said. we're going to stay at the negotiating table as we have been on nafta, and we'll move forward in a way that benefits us all >> what we're hearing is you want to keep nafta and the tariffs on separate tracks, but president trump is saying a very different thing.

saying that the tariffs depend on nafta are you at an impasse. where do you come to an agreement? >> not at all. we're happy to move forward on nafta. we made great advances in the last few weeks in terms of closing chapters and there's more to do in the coming weeks i'm excited about the pace we're on and hopeful we'll be able to improve it and negotiate it so it's up to date in a way that is a win-win-win for all of our countries. >> you said previously a few times that canada would be willing to walk away from nafta if the negotiations didn't go in canada's interests has that changed now that the tariffs are linked in? >> what i always said is we're going to make sure it's the right deal for canada. the right deal for canada also is a good deal for the united states there's no country in the world that has a greater vested interest in the u.s. doing well than canada doing well because we're so linked. >> are you still willing to walk away from the negotiations >> we have never been willing to walk away. we have always been willing to sit down and work meaningfully and constructively at the table.

we have also clearly said it has to be a good deal for canada if we're going to sign on, but we're going to work to get to that deal. >> what does it look like if it's not a good deal for canada? what will canada do? you must have given it thought >> these are negotiations. we'll continue talking about the ways where better integration of our economies, better opportunities for workers on both sides of our border, is something that we can get to trade has been good for canada and the u.s. this partnership has been great for canada and the u.s we're going to continue that by updating nafta, and it's so clear that there is a positive outcome for all of our countries at the end of this that i'm very confident we're going to meet it >> are you frustrated that you have not got a deal already? >> you know, these are deals that usually are measured in seven, eight years to negotiate. i think we're doing very, very well over the past year in getting close. and we're going to keep the pedal to the metal in the next couple weeks >> let me ask you about dealing

with president trump and his administration you told a room full of aluminum workers you have their backs you're constantly talking to the president, and people within the administration some have called his tactics economic bullying, though. how do you view that >> you know, i think the important thing for me is to always stand up for canadian jobs and canadian interests. and the president understands that and respects that whenever i do that, he gets that but he also gets and i get that standing up for canadian jobs and standing up for american jobs is not incompatible we can, we have always worked together, and we will. >> yet your method has been very different. the president takes to twitter a lot to voice his support for industry and workers there i know that a lot of the work has been done behind closed doors, especially to win this exemption, but do you think you need to be more forceful i have talked to workers who say they want to know you're going to be tough on this issue. as tough as the president is >> i have been unequivocal about standing up for canadian workers, standing up for canadian interests my job is to make sure that we

have a good relationship with the united states that results in good outcomes for canadians and for workers. that's what i have been doing for the past two years that i have been elected and what i'm going to continue to do. >> let's talk about some of the domestic issues going on in canada right now your approval rating down a little bit doug ford just selected head of the ontario pc party india, a bit of a debacle. now you're dealing with a threat of a trade war can you really afford to be in conflict with our biggest trading partner or in disagreement >> we're not in disagreement the president and i have a similar focus on protecting jobs - >> you're disagreeing on nafta, are you not? >> no, we're moving towards a better deal for everyone that's something we entirely agree on >> is canada willing to make negotiations >> we're always willing to negotiation. >> where are you willing to negotiate, on things like dairy? >> i'm going to negotiate at the negotiation table, not in the media. >> another concern that some of

the industry here has, both a m aluminum and steel, is canada becoming a back door for cheap metals >> we have been working hard on preventing that for the past years. we're worried about global oversupply, about china dumping and other places dumping their steel and aluminum it's affected our workers here we have put in very strong measures, some of the strongest in the world, against dumping. but as i said to the president, as i said to congressional leadership, i'm happy to work with the united states to go even further with them >> and at risk, though, of maybe angering some of canada's other trading partners like china. how do you negotiate the relationship here when nafta looks uncertain, but canada has signed on to the tpp tell me a little bit about the balancing act and how you choose >> we have always been unequivocal about standing up for canadian interests, canadian jobs we have done that consistently with the chinese on dumping of steel. we have done that consistently

with all of our partners we're looking for good trade deals around the world that benefit both sides of the trade deal that's something that we have been able to sign with europe. we moved forward with the cptpp. canada is a trading nation we're continuing to do that. but our closest ally, our best friend, our most important trading partner, is the united states and that will always remain. >> okay. you know, our best trading partner, but does it concern you that nationalists seem to be in power of the white house is it becomes more difficult to negotiate? >> the u.s., through history, has always gone through phases where it's been more protectionist, more open, more protectionist. canada has endured as a friend and ally and trading partner to the united states. the u.s. still sells more to canada than it does to china, japan, and the uk combined we are your number one customer in so many ways. we're going to continue to work very well with you regardless of the perspective in the white

house. >> let me ask you a little bit about the investment environment in canada. i know you said earlier this year, davos, that canada will not be following suit in terms of some of the things the u.s. is doing, in terms of tax cuts and regulatory changes is this putting canada at a disadvantage, especially when we're seeing foreign investment drop and the average corporate tax rate narrow very much between the two countries? >> we still have lower corporate tax rates than in the united states but more than that, we have an economy that is open to immigration. we actually have a global skill strategy that allows companies coming to canada to bring in their top talent from around the world because we know that means you're also going to hire local talent we know we have -- having strong trade deals around the world, whether it's the european union or the cptpp across asia, which is another market of almost 500 million people canada is a great place to do business we're making world class investments. >> the numbers aren't showing

that i'm talking about direct investment, the corporate tax rate, even the canadian markets underperforming global markets for the last decade, and particularly the american market >> the last decade was a challenge in that we had a government that didn't necessarily bring us in the right direction. over the past two years, i have brought us to be a lot more innovative and we have the fastest growing economy in the g-7 right now, the lowest unemployment rate in 40 years. we're putting more money in the pockets of the middle class by raising taxes on the weltiest 1% because that's helping our economy grow >> thank you for being with us today. >> always a pleasure >> guys, back over to you in new york >> thank you very much and our thanks to prime minister justin trudeau we want to bring back our panel. dan, i'll go to you first. you know, within the interview, deirdre made the point that canada is a much smaller economy, that the leverage might not be there for them to negotiate ate effectively. what's your take on that >> you know, it was a hard

hitting thrt view. i liked it quite a lot prime minister trudeau mentioned he's going to go to bat for canadian interests aluminum and steel producers when he says that, i say great because what's in their interest is in our interest and when foreign governments and foreign negotiators are trying to open the u.s. market and try to keep negotiations afloat, that's good for u.s. consumers yes, canada is a smaller country, but its proximity to the united states is absolute. we have a strong relationship with canada. we're highly integrated in a variety of industries. it's not a matter of the agreement going away it's just a matter of the terms. a little bit of the terms. it's the politics that matters more than the economics alt this point because the agreement only needs a few tweaks, but trump's unpopular in canada. he's unpopular in mexico so as was mentioned in the interview, it might be politically astute of the candidates to distance themselves from anything that's

american, in their election campaign so it's a complicated set of circumstances. i think that nafta will get done i think the steel tariffs, there will be plenty of exceptions granted. the problem is we have invoked this national security provision to do this that's going to lend credibility to that approach from china, europe, and others >> a lot of people complain that's a way to cover up crass protectionism. they brought up the topic you brought up, which is oversupply coming out of china. prime minister trudeau says they have done a lot to prevent dumping into canada. have they done enough? what more can be done besides just more talking? >> well, i think countries have to sit around the table and address the issue of oversupply and overcapacity this is not going to be dealt with with tariffs. this is a little bit what we heard from prime minister trudeau. a deals-based trade as opposed to rules-based trade is unlikely to bring stability,

predictability that you need to keep markets, let's say, growing and to keep generating jobs. so go back to the table and negotiate a set of rules that is going to - >> don't we have a set of rules and doesn't china violate them this is what i was trying to get to before we got to the interview with prime minister trudeau. >> no. >> really? you heard the prime minister himself say that, we have heard that from numerous people, pro-free trade people who say china is breaking the rules when it comes they subsidize their companies so they run unprofitable steel production companies that in any other country would already be out of business, and they circumvent a lot of rules by shrouding them in supposedly private companies. beneficial ownership is almost impossible there's so many ways we can point to where china is flouting the rules. >> and for that, there are rules in the world trade organization that allow countries to react to that this is precisely what the u.s. has done with china.

it's found china is dumping steel in its margt, that china is subsidizing illegally steel makers for exports to the u.s., and it's reacted to that as a result of that, china does not export today to the united states but this does not address overcapacity there's a steel overcapacity in countries around the world, most notably china, and for that, there are now rules. that is why it's important for countries to sit around table and to make a set of rules on capacity of the deal this is why a rules-based trade is a little better than deals-based trade. >> so what do you do, dan, about overcapacity if that's the problem, how do you address it >> as ambassador gonzalez suggested, there needs to be discussion, and there have been discussions about reining in excess capacity. it was reported a deal was done a few months ago, and wilbur ross went to report it to trump,

and he slammed his hand on the table and said i want tariffs. there's way to address this behavior, but there's a narrative that seems to suggest that china's behavior can't be disciplined within the wto the fact is we have only brought a couple dozen cases against china to the wto there are many more we can be doing. before we abandon that avenue and start going all unilateral and becoming trade scofflaws ourself, we should pursue this further. an easier way to do that is to stand shoulder to shoulder rather than to alienate our trading partners and back out of agreements like the tpp if we want to confront china and get it to abide the rules more consistently, we need to cultivate our relationships, not alienate them. >> good to have you. appreciate it, helping us dissect the interview with prime minister trudeau >> the western state wants to be known for cattle, coal, and

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hello, everyone. i'm sue herera here's your cnbc news update at this hour. british prime minister may telling parment it was highly likely russia was responsible for poisoning sergei skriral the former intelligence officer convicted of spying for britain. if moscow is behind the poisoning, her government will consider it an unlawful use of force by russia. russia rejecting the accusations as, quote, a circus show >> austin police are responding to a second reported explosion today in that region causing the austin mayor to warn residents not to open any suspicious packages. it's the third package explosion in that city in the last two weeks. and officials believe the first two were related officials recovering the downed chopper from new york's east river that crashed last night killing all five

passengers onboard the pilot was the only one to survive, and he reported the engine had failed just before that chopper crashed consumers could soon be receiving their packages by commercial drones. the "wall street journal" reporting drones are expected to begin limited package delivery right to your doorstep within months at least ten pilot programs have been approved by the faa that's the news update this hour now over to jackie d. for the oil close. hi, jackie >> good afternoon. crude prices turning down alongside equities today decline of a little more than 1% on the session that session low holding over $60 a barrel this is part of the sea-saw pattern we see a move higher last week, now some profit taking reports again surfacing of delays for that aramco ip orc. that could impact prices a little too a lot of support came when people believed the saudis were committed to keeping the price of oil on the high side in advance of the ip orb. this week, we'll also havehe t

opec monthly report on wednesday as well. "power lunch" is back in two the whisperer? why do they call him the whisperer? he talks to planes. he talks to planes. watch this. hey watson, what's avionics telling you? maintenance records and performance data suggest replacing capacitor c4. not bad. what's with the coffee maker? sorry. we are not on speaking terms.

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yet another window into the management style of america's first true businessman president. there have been staff departures and rumors of more to come,

policy challenges and sometimes imprauzizational pronouncements or seemingly so, that have left white house insiders flat footed here to talk about trump the manager is chris whipple, who has written a book examining the role that chiefs of staff have played in the west wing. and it's called the gate keepers. the white house chiefs of staff define every presidency. welcome back good to have you with us you have updated the book from your initial iteration with an interview of reince priebus, and even more recently, with steve bannon what did they tell you about trump the manager? his style? >> well, you know, this is obviously the most dysfunctional white house in modern history. you can probably take away the word modern at this point. >> you weren't there for the van buren presidency we don't have -- >> crazy >> one of the first things that reince priebus told me off the record was take everything you have heard and multiply it by 50 now, one of the things he meant by that was that no one was

empowered as a white house chief of staff to execute the president's agenda priebus had at least two other rivals, essentially three white house chiefs of staff. steve bannon was one, jared kushner was another. history shows -- i mean, history is littered with the wreckage of presidencies that tried to govern that way. unfortunately, donald trump's motto was the 26th floor of trump tower, where everybody came and went. nobody was empowered >> he was effectively his own chief of staff is that what he wants? >> that may be what he wants it has never worked in history you know, jerry ford had a very similar model to trump's he called it the spokes of the wheel, with jerry ford, the president in the center, everybody coming and going within a month, ford realized it was a disaster he called it trying to govern by fire hose. he begged his old pal don rumsfeld to come in, organize his white house, empowered him as white house chief of staff,

and it worked very well. and ford recovered and almost caught jimmy carter. so the truth is that every president learns, often the hard way, that you cannot govern effectively without empowering the white house chief as first among equals >> you said reince told you off the record, i assume it was brought on the record for the benefit of the viewer listening. >> this was a painstaking process of talking to reince priebus off the record at first and persuading him to put things on the record, and by the way, there are fascinating interviews with steve bannon as well. >> i bet process can often by policy. we seem to have learned that this past week when reporting indicates that because rob porter is out of the white house, kelly's process broke down and peter navarro and wilbur ross were able to get these tariffs sped up in a way that would not have previously been possible. you agree with that assessment >> yeah, i think i would and one other fascinating story that priebus tells me is about

the very beginning of the trump presidency, when trump was hell bent on ripping up nafta on day one, imposing 25% tariffs on steel and automobiles. trump had to be sat down and they had to explain to him, priebus and others, they had to explain, you remember those farmers in wisconsin if you rip up nafta, you're going to kill them so it is just an interesting footnote to what's happening right now. but i think you're absolutely right. the process broke down and john kelly, who of course, famously said he wasn't going to manage the president, but he was going to manage the west wing and the information flow, has in my mind really failed even at his own very narrow definition of the job and that's the narrowest possible definition. >> the counter to all this, though, chris, would be that the president has accomplished a lot of his agenda that people viewed as difficult to accomplish, including tax reform is he accomplishing this in spite of the dysfunction at the white house then >> i think this white house has

been broken from day one and it really hasn't been able to do anything right it couldn't pass legislation, tax reform passed, only because they kept donald trump 100 miles away from it they couldn't issue executive orders that were enforceable >> a lot of regulatory >> they couldn't prioritize the president's agenda they couldn't get anybody on the same page in domestic or foreign policy if you define governance as being a human wrecking ball and ripping up regulations and getting a judge on the supreme court, perhaps, sure by that narrow definition, has anything worked? sure, you could make that argument i would argue that by any conventional measures, this has been the most dysfunctional, least accomplished white house in modern history. >> i don't know, to melissa' point, and add to it, you said a supreme court justice. big deregulation, and a big tax cut. most people -- most republicans look at that and go, it's a layup. he's done it >> the fact that wall street likes this doesn't mean that's

is an accomplished white house this is exactly the criticism that was made of obama that he simply governed by executive order, he couldn't get anything passed. the reality is in the first year, he passed a stimulus, he passed - >> he got a lot of legislation passed >> he left this administration in the dust. so this presidency has been broken from day one. it hasn't been able to get any significant legislation passed except for tax reform. which may very well come back to haunt it we'll see. >> we'll find out. chris, thank you the book is "the gatekeepers" and it has been updated. chris, thanks. >> okay. >> thank you we want to get you caught up on the markets we're just about at session lows on the dow as well as the s&p. remember on the dow, we're taking a look at boeing and c caterpillar as the biggest drags. s&p is down by about six points right now. we did want to flag as well volatility the vix, that's up by about 9% that's something to watch as we proceed into the final hours of

the session. >> despite bitcoin being down nearly 20% for the week, one state eager to attract as much bitcoin business as it can get the governor of wyoming just signing five new laws making it easier to mine bitcoin in the state and to attract crypto related businesses. joining us is one of the legislators behind the move, tyler lindholm >> thank you, really honored to be here. >> tell us what the legislation does for the state of wyoming and why you think it's going to work >> right, one of the best aspects about the whole situation out of all these five bills is none of them cost anything for the taxpayers of the state of wyoming, and all we're really doing is opening up a regulatory gate and insuring that there is essentially a sandbox for these developers to play in. >> what prevented crypto minors from coming before and crypto companies coming before. why did you need to open a gate? >> right, so the wyoming money

transmitters act was being used to essentially regulate bitcoin and other digital currencies so the large exchanges would not operate in the state of wyoming. that was one of the first hurdles we cleared out of the way. another one of the aspects we did was we actually identified utility tokens as being a new asset class. and by doing so, we're the first legislative body in the world to do so. >> and that was hb-70, correct so utility tokens, you want to be out in front of the s.e.c. at this point in terms of determining what kind of token is a security and what kind of token is not >> absolutely. i think right now, a really good time to get out in front of the s.e.c. and hopefully be a good example for them there's a lot of different federal regulations out there, but none of them seem to speak directly to icos so there are different organizations, differentmuch like the s.e.c. and the cftc are taking different stabs and going in different directions. >> are you afraid that wyoming

will be the home of the ico scams? >> no, absolutely not. we've got regulations in place to keep the fraudsters out and we're looking for only those types of businesses that want to prosper. we've got security regulations in place in regards to fraud only for these utility icos. >> you have also xumpted all virtual kerracy from property tax. if i mine there and produce a product with a lot of value, i don't have to pay taxes on it. >> yeah, you don't have to pay property taxes at all. that's correct >> and it's not an income tax either >> that's correct. there's no state income tax. there's no corporate income tax either >> wow, and a lot of power in wyoming, right >> we do we're diversified. we have coal, we have natural gas, we have hydro we have all of those and the state of wyoming only uses about 10% of the power it produces we're a huge exporter of energy, so our kilowatt hour on the

wholesale is relatively cheap compared to elsewhere. >> and a great first name, state representative >> that's from tyler, our co-anchor. >> great name, too, sir. >> good to have you on thank you. >> chip stocks on fire this year names like micron, nvidia, lam research up 20%. can the red hot rally continue for this sector? as we head out, the dow at around session lows. down 181 points. boeing, caterpillar, united tech leading the declines alerts -- wouldn't you like one from the market

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south by southwest is under way down in austin with more than 400,000 people expected to attend the festival. julia boorstin is there with a look at one hot shot investor hunting for the next big thing

hi, julia. >> reporter: hi, tyler here at south by, ashton kutcher is known with a killer track record with uber, spotify and others kutcher and his partner hosted a startup competition here hundreds of tech entrepreneurs applying for five spots to pitch for judges, including matthew mcconaughey. the winner learn lux drew $200,000 from both sound ventures and beenniof. >> when you see a company on paper, it can look good. we have a founder-first principal for the things we invest in. for us, it's about investing in people we want to stand by, go to war with. >> reporter: now, this investment spotify ready to go public, kutcher says while he's happy to give his investors l k

liquidity, it brings more challenges. >> when the private market support these companies more than they have, they can do the things necessary to change the world that they're trying to do as opposed to trying to make stockholders happy. >> reporter: as for finding the next spotify or airbnb or uber, kutcher says he loves coming to places like austin to look outside the silicon valley. >> thank you. time for trading nation. let's take a look at the two best performing tech stocks in the past year. nvidia and micron, the chip duo soaring triple digits in the past year, leading the tech sector and showing no signs of slowing down micron spiking 11% today alone let's bring in the trading nation team. ari wald and mike. part of the bid underneath semis in general is this notion there will be consolidation. could either of these parties be involved in consolidation of

their own? >> i don't think nvidia and micron will be near consolidation but the whole space is benefiting from a multitude of tailwinds strong demand for electronics, addressing strong new markets and data, internet of things, mobile upgrades. i just think this whole space is very strong right now. and on top of that you have consolidation just not in these two names. both of these stocks have -- i'm sorry. both of these stocks have been strong we don't own either one of them but if i had to buy one, it would be micron. they're firing on all cylinders and it's cheap right now. >> eric, two questions for you, how do chips look, sma etf, micron or nvidia >> i'll start off with our view on the semis we're bullish. i think to make the case for those stocks, you have to start off making the case for semis as

a whole. how you want to look at philadelphia stock index is look in the long-term chart going back a couple decades. the stocks just breaking above levels from march of 2000. this an historic breakout. this is what we should be talking about. i think it makes the case that semis continue to work looking out in the future. what's going to outperform within that space in of those two names, micron stands out here next chart i brought is micron relative to industry, a leader versus a leading industry. yes, a little near term overbought but our work suggests this stock should continue to do well looking at the coming months and quarters. >> our thanks to you for more market insight, head to our website, tradingnation.cnbc.com check please is next >> announcer: and now the latest from tradingnation.cnbc.com and a word from our sponsor.

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that larry kudlow is the next to succeed gary cohn. larry was tight-lipped we'll see. >> it's potentially consequential because there's a lot of concern about whether or not there's still going to be some kind of free market voice within the administration. >> and how many times has he come on here, free markets. >> that's right. thanks for watching "power". >> "closing bell" starts now ♪ >> live from the new york stock exchange in new york city. this is the "closing bell," everybody. i'm kelly evans. who are you? >> i'm wilfred frost >> i don't welcome, by the way -- >> you don't welcome >> no. i was going to say, i was going to say, welcome, first of all. >> thank you >> i'm pleased to be sharing this perch with you for a little on it while. we have a lot to get to, which is still